Salesforce ADX-201 Exam: Do You Need to Enable Custom Fiscal Years?

Do You Need to Enable Custom Fiscal Years?

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Question

If your company's fiscal year begins on February 1st and contains the 12 gregorian months, do you need to enable custom fiscal years?

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Explanations

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A. B.

B.

As long as the fiscal year begins on the 1st of any month and follows the standard months, then custom fiscal years are not required.

Yes, you will need to enable custom fiscal years for your company's fiscal year that begins on February 1st and contains the 12 Gregorian months.

Salesforce has a standard fiscal year that begins on January 1st and ends on December 31st. However, if your organization uses a fiscal year that is different from the standard fiscal year, you will need to enable custom fiscal years in Salesforce.

In this case, since your company's fiscal year begins on February 1st, it does not align with the standard fiscal year. Enabling custom fiscal years will allow you to define your company's fiscal year as a custom fiscal year and set up the fiscal periods accordingly. You can create custom fiscal periods that align with your company's fiscal year, such as a fiscal year that starts on February 1st and ends on January 31st of the following year.

Enabling custom fiscal years will also allow you to perform accurate forecasting, reporting, and budgeting. It will help you track your organization's financial performance based on your company's fiscal year, and ensure that your data aligns with your financial reporting requirements.

Therefore, to align Salesforce with your company's fiscal year that begins on February 1st, you need to enable custom fiscal years. The correct answer to the question is A. Yes.